RBI imposed Monetary Penalty on Ilkal Co-operative Bank; Check Details:

RBI imposed Monetary Penalty on Ilkal Co-operative Bank; Check Details The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.1 lakh (Rupees One lakh only) on Ilkal Co-operative Bank Ltd., Ilkal, Karnataka (the bank) for non-adherence / violation of directions issued on Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs by an order dated January 23, 2023. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949 (AACS), taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. This action is based on regulatory compliance problems and is not intended to call into question the legitimacy of any transaction or agreement entered into by the bank with its clients. The bank's inspection report found, among other things, that the bank had wrongly classified certain non-performing accounts as standard assets as of March 31, 2021. Based on this, a Notice was given to the bank, directing it to show cause why a penalty should not be levied for failing to follow the directives. After reviewing the bank's response and oral remarks during the personal hearing, the RBI determined that the charge of non-compliance with the aforementioned directions was proved and warranted the imposition of monetary penalties.